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Evaluating the Effect of Roadside Parking on a Dual-Direction Urban Street

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How working from home reshapes cities.

Arjun Ramani^1,2, Joel Alcedo³, Nicholas Bloom²

¹Department of Economics, Massachusetts Institute of Technology, Cambridge, MA 02142.

Proceedings of the National Academy of Sciences of the United States of America

|October 29, 2024

Summary

This summary is machine-generated.

The rise of remote work is dispersing economic activity away from city centers, creating a "Donut Effect." This trend, driven by hybrid work arrangements, is reshaping urban economies and dispersing populations to surrounding suburban areas.

Keywords:

cities consumer spending migration real estate remote work

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Area of Science:

Urban Economics
Remote Work Studies
Economic Geography

Background:

Historically, economic activity has concentrated in major global cities.
The increasing prevalence of remote work presents a potential challenge to urban dominance.
Understanding the impact of remote work on economic dispersal is crucial for urban planning.

Purpose of the Study:

To provide global evidence of economic activity dispersal due to remote work.
To identify and analyze the phenomenon termed the "Donut Effect."
To investigate the role of hybrid work in shaping post-pandemic urban dynamics.

Main Methods:

Utilized multiple high-frequency datasets covering spending, commuting, migration, and housing.
Analyzed global evidence to demonstrate the dispersion of economic activity from city centers.
Employed detailed household microdata from the United States to examine migration patterns.

Main Results:

Remote work has led to a measurable dispersal of economic activity away from urban centers globally.
The "Donut Effect" is more pronounced and persistent in cities with higher remote work adoption.
Three-fifths of households leaving city centers in major US cities relocated to their suburbs, indicating a hybrid work influence.

Conclusions:

The "Donut Effect" signifies a significant shift in economic activity distribution, driven by remote and hybrid work.
Hybrid work models are a key factor in the persistence of this dispersal, keeping populations within broader metropolitan areas.
The trend suggests a lasting transformation of urban economic geography, with implications for future city development.